【微观经济学PPT课】Lecture 13 14 2.14.06student.ppt

Lectures 13 and 14 Applying the Competitive Model Key topics 1. consumer surplus 2. producer surplus 3. competition maximizes surplus 4. policies that shift supply curves 5. policies that create a wedge between supply and demand comparing both types of policies: imports Consumer’s well-being using a consumers utility function is not practical for 2 reasons: we dont know individuals utility functions we cannot compare utilities across individuals instead, we measure consumer welfare in dollars easier to measure than utility can compare dollars across individuals Measuring consumer well-bei